Your whole life policy does more than protect your family — it doubles as a place to bank from. Every policy in Policy Stack opens a loan account the moment you add it — whether or not you are already carrying a balance. That account is how you put your cash value to work without interrupting its growth.
Every policy has a loan account
When you add a policy, Policy Stack creates a policy-loan account for it right away. If you are not carrying a loan yet, it opens at $0 — nothing is borrowed, and your full cash value is available to draw against. If you already have a loan balance when you add the policy, that balance is your starting point. Either way, the account gives you a place to record a draw and watch the balance move over time.
What a draw is
A draw is capital you borrow against your policy's cash value. The defining feature of whole life banking: your cash value stays in the policy and keeps compounding as if you never touched it, even while a draw is outstanding. The carrier lends against the cash value as collateral — the cash value itself never leaves. Each draw raises your loan balance by the amount drawn.
Loan balance and capitalized interest
Your carrier charges interest on the outstanding balance. If you do not pay that interest separately, it is added to the balance as capitalized interest — the balance grows by the interest amount. You decide how to handle it: pay interest as you go, or let it capitalize. Policy Stack records whichever path you take.
Some carriers price each draw at its own rate. A draw can carry an optional rate of its own — otherwise it uses the policy's default loan rate — and when rates differ across draws, the loan displays the weighted average.